To those looking for income properties...

[1sik_bmw]

@bracketracer

Couple of these came up in my search, but I was looking for something more rural. Just had an offer accepted on this place, and had the home inspection done this morning.

4 unit, 5100 s/f total, couple of ponds, about 6 acres. Should close on 6/14

That’s a 4 unit?! what was the price on it, looks beautiful

[bracketracer]

They were asking 240. Got it for less. It’s currently fully rented, but we will be moving into one of them at closing. Pretty close to Delphi/Yahoo

[Wahoo]

@slo ride

the thing that hangs up most people on FHA is chipped and peeling paint. you can’t have it on the home or any buildings on the property unless it is obvious that the paint is from a post-1973 (i think) time. for example a house built in 1992 with chipped paint…it obviously isn’t lead or covering lead paint.

FHA does not require a “home inspection” by a home inspector although issues such as the paint will get noted in the appraisal which is a non-invasive inspection of the property which is primarily intended to establish an opinion of value, not check to see if every outlet is wired correctly or if building permits were pulled for all additions and work. the appraiser will have a checklist of items that should be reviewed as part of the appraisal, but issues will only be noted if they are readily apparent. all of the utilities need to be on and in working order. lights should turn on, water should run and drain and there has to be a permanent, central, interior source of heat- that is in working order.

also if you are thinking of this for an income property then FHA is already out of the question.

Why is FHA out of the question? Im not trying to buy any of them in this hread, im approved to buy my dads apt, just was wondering about the home inspection.

[slo_ride]

FHA is for owner occupant.

[Mankthetank19]

@bracketracer

They were asking 240. Got it for less. It’s currently fully rented, but we will be moving into one of them at closing. Pretty close to Delphi/Yahoo

Someone say Yahoo

[Oasis24-7]

fha is not totally out of the question but you are supposed to live in it for at least a year no one has ever checked on me

[Wahoo]

Ah, yeah ill be living in it.

[bracketracer]

This is one of the reasons we went FHA. With the interest rate we got, it was a no-brainer. No sense in tying up a bunch of money up front. If we went conventional, it would have required 33% down on a 4-unit property.

[WGFletch]

@bracketracer

This is one of the reasons we went FHA. With the interest rate we got, it was a no-brainer. No sense in tying up a bunch of money up front. If we went conventional, it would have required 33% down on a 4-unit property.

they allowed u to purchase it with people already living in it???..hopefully you dont get caught i dont even no what happens if you do though

and did u get locked into the older FHA terms? that still allows you to eliminate mortgage inusrance once you reach 20% equity in the loan?

[cougarspeed]

You are allowed to buy owner occupied rental using FHA if it is claimed as primary residence up to 4-units IIRC.

I was shocked when I heard about the new mortgage insurance terms! In fact I was amazed at what they have gone up to as well. On my first house which was around 150k in 2009 when I got it my PMI was around $50/mo. I just helped someone through the buying process and I believe it was $165/mo for a similar loan amount. Luckily they can get rid of it once they reach 20% unlike the new ones(I dont know the date of the switch).

[WGFletch]

@cougarspeed

You are allowed to buy owner occupied rental using FHA if it is claimed as primary residence up to 4-units IIRC.

I was shocked when I heard about the new mortgage insurance terms! In fact I was amazed at what they have gone up to as well. On my first house which was around 150k in 2009 when I got it my PMI was around $50/mo. I just helped someone through the buying process and I believe it was $165/mo for a similar loan amount. Luckily they can get rid of it once they reach 20% unlike the new ones(I dont know the date of the switch).

yup rates of insurance went up and you an no longer get rid of it with

it started april 1st i believe

[bracketracer]

@WGFletch

they allowed u to purchase it with people already living in it???..hopefully you dont get caught i dont even no what happens if you do though

and did u get locked into the older FHA terms? that still allows you to eliminate mortgage inusrance once you reach 20% equity in the loan?

We will occupy one of the units at closing, so not a problem.

And yes, the FHA PMI change doesn’t happen until 6/1. Rates were definitely heavy though.

[Geehee]

@Event

Bump, North Buffalo 3/3 just popped up a few days ago:

Buffalo NY Homes For Sale - Buffalo Properties Real Estate | 2findyourhome

On Sterling, which from what I’ve seen is one of the nicer streets on the Hertel strip.

Its my neighbor. its a dump.

[ProgRocker]

Really^ That’s a good price for the area as long as the inside isn’t completely shit.

[Geehee]

I havent been inside it in close to 4 years, but when I was it was pretty bad. Needs a new roof. back double level porch needs some serious repair/replacement as its falling off the house currently. gravel driveway, no garage.

good price for the area, which is why its getting so much attention, and im no doctor but it looks like it needs some serious work. They had an open house yesterday with about a billion people.

[bracketracer]

I’ve looked at over 100 listings online over the past 6 weeks, we’ve driven to and checked out about half of those. Did an open house on this one a couple of weekends ago. If I were in a position to buy another one right now, one that I wasn’t planning on living in, this would be it:

Plenty of income. I think I figured the net rental less mortgage payment to be somewhere in the $500/mo range.

North Tonowanda

[MOBOOST4U]

Yeah PMI is almost forcing me right out of FHA if I can come up with the funds somehow (unfortunately im going for several properties right now so im not sure that will be possible). I just dont like the idea of having to build 17% equity over several years making substancial payments that ill never see again. It was a great deal when it was lower but now its a bit of a kick in the sack. Ahh well, still great to have the option if you cant come up with a decent down payment.

[1sik_bmw]

Welcome to owning a house, financially its depressing seeing how much of your money goes towards bank fat cats and insurances/taxes…MERICA

[WGFletch]

@MOBOOST4U

Yeah PMI is almost forcing me right out of FHA if I can come up with the funds somehow (unfortunately im going for several properties right now so im not sure that will be possible). I just dont like the idea of having to build 17% equity over several years making substancial payments that ill never see again. It was a great deal when it was lower but now its a bit of a kick in the sack. Ahh well, still great to have the option if you cant come up with a decent down payment.

the new terms no longer allow you to EVER get rid of the insurance (unless you refinance)…for the entire life of the loan you pay the % for PMI…most peopel are not aware of this for what ever reason but this is true for the new fha

[bracketracer]

Correction, for FHA approved after 6/1.

And yeah, it doesn’t really jump out at you anywhere in the news.